Statement re Investment in Ne

RNS Number : 0989C

Barclays PLC

27 August 2008

 



27 August 2008

BARCLAYS PLC

Barclays to invest in New China Trust 

Barclays Bank PLC (Barclays), acting through its investment banking business Barclays Capital, has today received regulatory authority approval to make a minority investment in New China Trust Co. Ltd (NCT). 

This investment will bring together the strengths of Barclays Capital in financing, risk management and product developments, and NCT's local trust market and RMB debt market expertise.

Barclays investment in NCT will be approximately RMB240m (US$35m), resulting in Barclays owning 19.5% of NCT. The investment in NCT is expected to be completed before the end of November 2008. Barclays will fund this investment from existing cash resources.

NCT is one of the leading trust companies in the People's Republic of China. NCT has particular expertise in providing capital raising solutions for infrastructure and other capital intensive sectors and a strong track record in providing structured trust products for local financial institutions and corporates. 

'Our investment in NCT is further evidence of Barclays strong commitment to China. The opportunities open to us through our investment in NCT will enable us to broaden our client base in China and increase the range of financing and risk management solutions we can provide Barclays Capital and NCT clients,' said Robert Morrice, Chairman and Chief Executive, Barclays PLC, Asia Pacific.  'We look forward to working closely with NCT to further develop our respective businesses in China's capital markets. Barclays Capital will continue to increase its presence across Asia as part of our ongoing strategy to be a leader in the region's domestic capital markets. Our investment in NCT accelerates this strategy,' he added.

-Ends-

For further information please contact:

Barclays

Investor Relations                           Media Relations    

Mark Merson                                  Alistair Smith

[phone]                     [phone]

John McIvor                                     Ebony Kenny

[phone]                     [phone]

At Barclays Capital

Clare Williams

[phone]

Angie Tang

[phone]

About Barclays

Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services with an extensive international presence in Europe, the United States, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs approximately 147,000 people. Barclays moves, lends, invests and protects money for over 38 million customers and clients worldwide.  

For further information about Barclays, please visit our website www.barclays.com

About Barclays Capital

Barclays Capital is the investment banking division of Barclays Bank PLC which has an AA long-term credit rating. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with solutions to their financing and risk management needs. Barclays Capital has offices around the world, employs over 16,300 people and has the global reach and distribution power to meet the needs of issuers and investors worldwide. 

For further information about Barclays Capital, please visit our website www.barclayscapital.com.

About NCT

New China Trust Co. Ltd is one of the leading trust companies in the People's Republic of China. NCT has particular expertise in providing capital raising solutions for the property and infrastructure sectors and an excellent track record providing bond underwriting for local financial institutions and corporates. NCT was founded in  1979 and has over 150 employees. 

Forward Looking Statements

This announcement contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to certain of the Group's plans and its current goals and expectations relating to its future financial condition and performance. 

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, UK domestic and global economic and business conditions, market related risks such as changes in interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, changes in legislation and the impact of competition- a number of which factors are beyond the Group's control. As a result, the Group's actual future results may differ materially from the plans, goals, and expectations set forth in the Group's forward-looking statements. Any forward-looking statements made by or on behalf of Barclays speak only as of the date they are made. Barclays does not undertake to update forward-looking statements to reflect any changes in Barclays expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Barclays has made or may make in documents it has filed or may file with the SEC.

 

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